Disney (ticker: DIS) is considering the possibility of integrating some of its TV networks into its joint venture with Hearst, as reported by The Wall Street Journal.
Valuable Content for Streaming Platforms
Executives at Disney have recognized that certain TV channels, such as ABC, Disney Channel, and FX, play a crucial role in the long-term success of the company. These channels contribute popular content to streaming platforms Disney+ and Hulu. On the other hand, channels like Freeform and the National Geographic channel hold less significance for Disney’s future plans.
Integration with A+E Networks
To address this, Disney has explored the option of including some of these less valuable channels within A+E Networks. A+E Networks is a 50-50 joint venture between Disney and Hearst and currently includes channels like the History Channel and Lifetime.
Future Plans and Shareholder Value
Disney’s Chief Executive, Bob Iger, stated in an interview with CNBC that the company has been considering various strategic options for each of their networks individually, with the ultimate goal of increasing shareholder value.
Stock Performance
As of premarket trading on Friday, Disney’s stock was down 0.3% to $90.13. However, the stock has experienced a 4% increase this year.